📊 LECO Key Takeaways
Is Lincoln Electric Holdings Inc. (LECO) a Good Investment?
Lincoln Electric demonstrates exceptional operational efficiency with 17% operating margins, outstanding cash generation ($534M FCF), and superior returns on capital (35.4% ROE). Strong liquidity and manageable leverage position the company well, though the stagnation in net income despite 5.6% revenue growth indicates margin compression pressures that warrant monitoring.
Strong profitability and capital efficiency (36% gross margin, 17% operating margin, 35% ROE) with healthy liquidity and 13.6x interest coverage indicate a high-quality operator. Despite modest top-line growth and flat net income YoY, free cash flow is robust (12.6% FCF margin), supporting reinvestment and balance sheet strength. Fundamentals point to durable cash generation through cycles, warranting a constructive view.
Why Buy Lincoln Electric Holdings Inc. Stock? LECO Key Strengths
- Exceptional profitability: 17.0% operating margin and 12.3% net margin indicate strong pricing power and operational efficiency
- Outstanding cash generation: $534M free cash flow with 12.6% FCF margin provides capital for debt reduction and shareholder returns
- Superior returns on capital: 35.4% ROE and 13.8% ROA demonstrate highly efficient deployment of shareholder capital
- Strong financial position: 0.78x debt-to-equity, 13.6x interest coverage, and 1.82x current ratio indicate healthy balance sheet and liquidity
- EPS growth outpacing net income (14.4% vs 0%) reflects disciplined share buyback program
- High and stable margins with strong ROE/ROA
- Robust free cash flow and solid FCF margin
- Healthy balance sheet and ample interest coverage
LECO Stock Risks: Lincoln Electric Holdings Inc. Investment Risks
- Net income flat YoY (0% growth) despite 5.6% revenue growth signals margin compression under operational or cost pressures
- Cyclical industry exposure as metalworking machinery supplier vulnerable to economic downturn and capex cuts from customers
- Elevated debt at $1.2B requires ongoing cash flow generation to service; refinancing risk in rising rate environment
- Capital-intensive operations with $127M annual capex reducing FCF conversion efficiency
- Industrial cycle exposure could pressure volumes and mix
- Input cost inflation could compress price/cost spread and margins
- EPS growth outpacing net income suggests reliance on buybacks over underlying earnings growth
Key Metrics to Watch
- Operating margin trend - continuation or stabilization of compression
- Organic revenue growth rate - whether 5.6% can be sustained or accelerated
- Free cash flow conversion and capital allocation priorities
- Debt reduction pace and leverage trajectory
- Working capital management and accounts receivable turnover
- Operating margin sustainability
- Free cash flow conversion (OCF and FCF vs. net income)
Lincoln Electric Holdings Inc. (LECO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Lincoln Electric Holdings Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LECO Profit Margin, ROE & Profitability Analysis
LECO vs Materials Sector: How Lincoln Electric Holdings Inc. Compares
How Lincoln Electric Holdings Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lincoln Electric Holdings Inc. Stock Overvalued? LECO Valuation Analysis 2026
Based on fundamental analysis, Lincoln Electric Holdings Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lincoln Electric Holdings Inc. Balance Sheet: LECO Debt, Cash & Liquidity
LECO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lincoln Electric Holdings Inc.'s revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.37 reflects profitable operations.
LECO Revenue Growth, EPS Growth & YoY Performance
LECO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $983.8M | $100.8M | $1.77 |
| Q2 2025 | $1.0B | $101.7M | $1.77 |
| Q1 2025 | $981.2M | $118.5M | $2.10 |
| Q3 2024 | $983.8M | $100.8M | $1.77 |
| Q2 2024 | $1.0B | $101.7M | $1.77 |
| Q1 2024 | $981.2M | $121.9M | $2.09 |
| Q3 2023 | $935.2M | $109.2M | $1.87 |
| Q2 2023 | $969.6M | $127.8M | $2.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lincoln Electric Holdings Inc. Dividends, Buybacks & Capital Allocation
LECO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lincoln Electric Holdings Inc. (CIK: 0000059527)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 19, 2026 | DEF 14A | i26041_leco-def14a.htm | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_040320.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_040318.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_040316.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/form4-03042026_040314.xml | View → |
❓ Frequently Asked Questions about LECO
What is the AI rating for LECO?
Lincoln Electric Holdings Inc. (LECO) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LECO's key strengths?
Claude: Exceptional profitability: 17.0% operating margin and 12.3% net margin indicate strong pricing power and operational efficiency. Outstanding cash generation: $534M free cash flow with 12.6% FCF margin provides capital for debt reduction and shareholder returns. ChatGPT: High and stable margins with strong ROE/ROA. Robust free cash flow and solid FCF margin.
What are the risks of investing in LECO?
Claude: Net income flat YoY (0% growth) despite 5.6% revenue growth signals margin compression under operational or cost pressures. Cyclical industry exposure as metalworking machinery supplier vulnerable to economic downturn and capex cuts from customers. ChatGPT: Industrial cycle exposure could pressure volumes and mix. Input cost inflation could compress price/cost spread and margins.
What is LECO's revenue and growth?
Lincoln Electric Holdings Inc. reported revenue of $4.2B.
Does LECO pay dividends?
Lincoln Electric Holdings Inc. pays dividends, with $168.2M distributed to shareholders in the trailing twelve months.
Where can I find LECO SEC filings?
Official SEC filings for Lincoln Electric Holdings Inc. (CIK: 0000059527) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LECO's EPS?
Lincoln Electric Holdings Inc. has a diluted EPS of $9.32.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LECO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lincoln Electric Holdings Inc. has a BUY rating with 79% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is LECO stock overvalued or undervalued?
Valuation metrics for LECO: ROE of 35.4% (sector avg: 14%), net margin of 12.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy LECO stock in 2026?
Our dual AI analysis gives Lincoln Electric Holdings Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LECO's free cash flow?
Lincoln Electric Holdings Inc.'s operating cash flow is $661.2M, with capital expenditures of $127.0M. FCF margin is 12.6%.
How does LECO compare to other Materials stocks?
Vs Materials sector averages: Net margin 12.3% (avg: 10%), ROE 35.4% (avg: 14%), current ratio 1.82 (avg: 1.6).
Why is LECO's return on equity (ROE) so high?
Lincoln Electric Holdings Inc. has a return on equity of 35.4%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 12.3% net margin.